Dr. Curt Lacy (UGA)

The chart below demonstrates the amazing run we have experienced in the cattle market in recent weeks. For the week ending January 21, 2011, prices for 500-600 steers and bulls grades 1-2 averaged 122.23, 22 percent higher than the five-year average and 28 percent above the same week last year. Many producers have questions about how long this rally can continue. The answer is, no one really knows. What we do know is, that with the extremely tight supply situation and robust beef demand, the current fundamentals support continued strength in the feeder cattle market. The major risks continue to be feed prices, increasing fuel costs and the struggling economy.

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